Omaha daily bee., 1887-04-05
The Monetary Situation.

lie Ddlk ClettllIlSS VI tno COuutly ulc
one of the best means of Judging of the
activity of general trade. Where two
men do business at the same bank, and
their checks with each other 60 directly
to that bank, no record appears in the
weekly table which is printed in the press.
The amount given in print is the sum of
checks that went to the clearing houses
This sum last week was billion dollars,
which indicates a good state of trade
excellent il we account for the shrlnkage
of all prices and the increased value of
money since 1888. In the hard times of
1884 and 1885 the total of this same weekly
table sank as low as $500, ,0OO,O In the
boom which reached its maximum IN the
summer of 1881, the figures were three
times as great. The billion-point, how
ever, means prosperity without special
excitement, outside of the rush to get
freight to its destination before the new
commerce law went into operation.
In tho bank clearings published IN yes.
terday's BEE, the increase in Omaha over
last years report was 129 per cent, the
largest ratio of progress in the nation.
While this result IS highly gratifying and
must advance our city in the opinion Of
the business world, it still involves com
paratively small figures, and the growth
in number of our transactions cannot
long be expected to continue such sur
prises. A hundred per cent increase,
with two millions of clearings, means a
million Of new business. But Boston's
20 per cent increase in hundred mil
lions means twenty three millions.
Business seems to be iveliest at St.
Paul, Omaha. Boston, Denver, and San
Francisco. The increase ut St. Paul,
without a similar growth ut Minneapolis,
| is notable point in the table of clear
ances.
1t must be remembered that the ma.
tional treasury has emptied out, in one
way or another-principally in thrittless
appropriations by congress-over hun
dred millions in boarded money since
last April. This has meant two dollars
| for every man, woman, and child in the
land, and this disbursement has undoubt.
edly eased trade very greatly. On the
other hand, the imports have begun to
grow large. These, in the first place, take
money away. and. in the second place.
the customs taxes for the imports go into
the treasury, whence the money is hard
to get into circulation again.
Last Saturday the payments of taxes
into the treasury for customs were very
heavy. At the same time, the United
States ub-treasury owed the New York
clearing house S3,OOoOOO. Now the gov
ernment accepted silver for the customs
but its check to the clearing house fol
three millions must be paid in gold
Whyg Because it is the law? No. Be
cause the New York tinanciers are able
to defy the law. 1t puts stigma on sill
yer, and that satisfies the gold men.
While money is going into the treasury
and out of the country rather rapidly the
New York banks are unable to keep thei
reserve at its customary figure. This let
out money to take the place of tina
which ceases circulating by deposit il
the treasury. We can call only $35 900, ,OO
more bonds. and there are 1854 ,0O0, 900 o
surplus, with steady increase. Thu
the situation ut the treasury Is bad.
At present, the stock spectators bas
their most hopeful predictions on tn
phenomenal prosperity of Nebraska
The brokers say the Rock Island peopl,
will carry %, 6,0O0, 900 into this state will
which to push their railroad extensions
AS to the real good fortune Of such piec
of news, when looked at from the poin
a Nebraska farmer should occupy, tn
BEE may at an early day have somethin!
to say. But, as stock broker in Wa
street sees it, it Is upquestionably sati;
factory.
Notwithstanding the hint that tn
Union Pacific road means to borro,
another vast sum of money, the interes
and principal of which must some tim
be muloted from the people already SUI
J fcring from Its expressions, the finar
ciers affect 20 believe that the recent ar
, nual report OF the road is q cheerin
document, one calculated to further th
nation in the good opinion Of the worl
at large.
All signs point to the conclusion tbs
the nation is in the midst of good time'
that the end OF this season Of prosperit
is not closely in view. and that Omaha
at the very pivot OF the national activity
| and Iikalv m mako the 0raatpsf Oains